HSBC Said It Will Appeal Household International Ruling

HSBC Holdings Plc (HSBA), Europe’s largest
bank by market value, plans to appeal a $2.46 billion U.S. court
verdict against its former Household International unit.

A federal judge in Chicago yesterday ordered the bank to
pay $1.48 billion in damages and $986 million in interest,
according to court filings.

Household stockholders sued in 2002, alleging the company
and three executives made misleading statements about its
mortgage-lending practices. The lender had earlier agreed to pay
$484 million in fines to settle claims lodged by more than a
dozen states.

“This was next legal step in an 11-year-old case,” HSBC
spokesman Patrick Humphris said in an e-mailed statement. “We
plan to appeal, and we believe we have a strong argument.”

Household was acquired by London-based HSBC in March 2003
for $15.5 billion. It is now known as HSBC Finance Corp.

The case is Lawrence E. Jaffe Pension Plan v. Household
International Inc., 1:02-cv-05893, U.S. District Court, Northern
District of Illinois (Chicago).